Bearish view
Sell the BTC/USD pair and set a take-profit at 68,000.
Add a stop-loss at 75,000.
Timeline: 1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 75,000.
Add a stop-loss at 68,000.
Bitcoin price continued its strong downward trend, reaching its lowest level since April, and erasing some of the gains made earlier this year. The BTC/USD pair retreated to 71,568, much lower than last month’s high of 82,650.
Top Regulated Brokers
Bitcoin Price Crashes as Risks Rose
The BTC/USD pair retreated as risks in the crypto industry escalated, pushing many American investors to sell their ETFs. Data shows that these ETFs have shed substantial assets in the past few weeks.
They lost over $2.4 billion in assets in May, the worst month this year, partly because of the booming stock market. The S&P 500 Index has already moved into a bull market after rising by 20% from its lowest level this year.
Similarly, the Nasdaq 100 Index has jumped by double digits, while the Dow Jones by 14% from the year-to-date low. As a result, there are signs that investors have continued to rotate to these assets this year.
Bitcoin price retreated as investors reacted to the ongoing concerns about the US and Iran. In a statement, Iran’s foreign affairs minister said that he had suspended talks with the US, citing Israel’s bombardment of Lebanon.
Trump attempted to calm the situation down, saying that the talks between the two countries were continuing. He also said that Israel and Hezbollah agreed to stop attacking each other. According to Axios, Lebanese officials said that Hezbollah officials said that they were ready for a ceasefire.
BTC/USD Technical Analysis
Bitcoin price has crashed in the past few days, moving from a high of $82,650 in May to the current $71,300. It has dropped to its lowest point since April this year.
The BTC/USD pair has moved below the 50-day Exponential Moving Average (EMA). It also moved below the middle line of the Bollinger Bands.
The Relative Strength Index (RSI) has continued falling and moved to the oversold level. Also, this retreat happened after the coin formed a rising wedge pattern, a common bearish reversal sign.
Therefore, the pair will likely continue falling, potentially to the key support level at 68,000. However, a move above the key resistance level at 76,000 will invalidate the bearish outlook.
Ready to trade our free Forex signals? Here are the best MT4 crypto brokers to choose from.